BAKU, Azerbaijan, July 5
By Tamilla Mammadova – Trend:
Georgia expects to agree with the International Monetary Fund (IMF) on a new cooperation program, which should contribute to the country's rapid economic growth in COVID-19 post-pandemic period, Trend reports this with reference to the Ministry of Finance of Georgia.
According to the ministry, a meeting was held with the fund's mission, which began work in Georgia in a virtual format and will continue in the form of consultations for two weeks in accordance with Article IV of the IMF charter.
The purpose of the meeting, which was attended by his deputies, as well as heads of departments of budget, macroeconomic analysis and planning of fiscal policy, together with Finance Minister Lasha Khutsishvili, was to assess the economic situation in Georgia, fiscal and monetary policy in the country.
Khutsishvili informed the members of the mission about the current situation in the economy, updated forecasts of economic growth, measures taken to support business and provide social assistance to the population, the dynamics of budget execution, fiscal consolidation and plans to strengthen the stability of the financial sector.
With the support of the cooperation program with the IMF under the Extended Funding Facility (EFF), significant reforms were carried out in Georgia, and it was also possible to reduce the damage from the global COVID-19 pandemic.
In April 2017, the IMF approved a three-year EFF program for Georgia, which provides for the phased allocation of SDR 201.4 million (over $290 million) to the republic based on the results of semi-annual reviews. In December 2019, the executive board of the fund approved a one-year extension of the EFF until April 2021, bringing the total financial support from the fund to about $690 million under this program, increasing Georgia's resilience to shock and its ability to cope with the pandemic.
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